Sanyo to spin-off loss-making chip business

TOKYO - Struggling Japanese electronics maker Sanyo Electric Co. Ltd. said on Friday that it planned to spin off its loss-making semiconductor division on July 1, the latest in a series of restructuring steps.

Sanyo has said it was considering a spin-off of the semiconductor unit, which has never fully recovered since an earthquake damaged a major chip factory in Japan in 2004.

The Osaka-based electronics maker embarked on a sweeping restructuring plan last year, saying it would cut 15 percent of its group work force, close factories, halve its debt and streamline unprofitable business areas.

Dealing with the chip business is one of the most-pressing tasks for Sanyo, which has recently formed alliances with Finland's Nokia in mobile phones and Taiwan's Quanta Computer in flat TVs to help it revive its business.